Pershing Square Activist Presentation Deck
Overview of Interest Rate Hedge
Beginning in December 2020, we acquired out-of-the-money interest rate
swaptions to protect our portfolio against an unexpected rise in rates
Tenor
Summary of Initial Interest Rate Hedge Program
Monetized 2YR Swaption
Monetized 10YR Swaption
Total Monetized Hedge
Retained 2YR Swaption
Total Initial Hedge
Premium
Paid
$107
76
$183
5
$188
Proceeds /
Market Value
$1,071
180
$1,252
134
$1,386
($mm)
Multiple of
Capital
10.0x
2.4x
The "Multiple of Capital" information is provided for illustrative purposes only and is not an indication of future returns of the Pershing Square funds.
6.8x
27.1x
7.4x
In January, we unwound more than 90% of the market value of our hedge, generating $1.25bn in
proceeds, and have since replaced a substantial portion of the hedge with additional longer-dated,
out-of-the-money swaptions
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